Introduction
USD/CHF is sinking deeper
For sometime now, the bears have maintained a solid control of the USD/CHF. The pair has been trading lower since early this month. How far will it go?
Factors Affecting
It seems the general dollar weakness, which has been present in the market has also favored the performance of the Swiss Franc. The recently released dovish FOMC statement has ignited risk taking in the marketplace. As such, traders have been avoiding dollar denominated assets. And, with the absence of major economic reports from Switzerland, the appreciation of the Swiss Franc has been propelled by this.
Technical Analysis
As earlier mentioned, Forex technical analysis on the USD/CHF reveals it’s trading in a strong downtrend. If the pair continues with this move, it may encounter support at 0.9140 before moving lower. On the other hand, if the pair starts receding upwards, it may encounter resistance at 0.9400 before moving higher.
Forecast
The pair is on a downtrend. Thus, traders who were short in it should continue holding on to their positions as long as the bearish pressure is still evident.
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DISCLOSURE & DISCLAIMER:
THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY WITH THE READER.
